Using Filters to Help Fight Fraudulent Orders

True or False

Now that the holiday shopping rush is over, merchants can relax a bit and worry somewhat less about fraudulent orders. Surprising as it may seem, the answer is “false.” In fact, the New Year can bring an increase in potentially fraudulent orders, rather than a decrease in the number of such transactions. Fortunately, there are ways merchants can fight back against this phenomenon with the use of special filters ranking at the top of the list:

Before learning about what these filters are and how they work, it’s important to explain the way in which card fraud is committed. Card testing/verification fraud ranks among the most common types and methods of card fraud. In this type of scenario, online fraudsters use long lists of stolen card numbers. They initiate multiple small purchases with merchants often hundreds or even thousands of them at a time to determine which credit card information is valid for later use.

The repercussions of fraudulent order transactions can be significant and a big blow to the bottom line. Transaction fees alone can add up and multiply many times over very quickly. Indeed, for merchants, the situation has the potential to turn into a nightmare.

Credit Card Fraud Filters!

But just as E-Complish’s compliance with the Payment Card Industry Data Security Standard (PCI DSS) helps merchants protect their customers from credit card fraud, so, too, do special filters available to our clients. Merchants that utilize E-Complish’s payment solutions and services can avail themselves of these filters, and their managers can access them for updates.

One such filter is known as the Hourly Velocity Filter. It limits the amount of credit card transactions merchants can receive each hour. The lower the hourly transaction total, the lesser the chance of being hit with fraudulent credit card orders.

Then, there is the Transaction IP Velocity Filter. With this filter in place, merchants can identify instances in which they are seeing an excessive number of transactions (credit card orders) from the same IP address. While receiving a few say, two credit card orders from one IP address in a short interval may not be a sign of fraud, being hit with a myriad of orders generated by a single source almost certainly is so. The Transaction IP Velocity Filter makes a great antidote to the activity of this type.

A Suspicious Transaction Filter and an Amount Filter rank on the list of fraudulent order-fighting filters as well. The Suspicious Transaction Filter reviews highly suspicious transactions, applying proprietary criteria identified by Authorize.Net’s fraud management team to determine whether fraud appears to be indicated. Meanwhile, the Amount Filter restricts high-risk transactions by dollar amount; transactions that exceed the threshold are not processed.

Merchants cannot afford to be complacent about fighting back against fraud at a time when fraudulent activity runs rampant and criminals will stop at seemingly nothing to access valid credit card numbers for nefarious purposes. Offering clients access to powerful filters is one way in which E-Complish can help merchants fight back against the use of fraudulent orders to perpetrate their schemes. Schedule a consultation to learn more.